Boeing nabs $5 billion jet deal

Emirates expected to order 26 of the new longer-range 777-300ER

Published 10:00 pm, Tuesday, May 27, 2003

Emirates, the fastest-growing airline in the Middle East, plans to order as many as 26 of The Boeing Co.'s new longer-range 777-300ER jets, industry sources confirmed yesterday.

The deal, which is expected to be announced at next month's Paris Air Show, would be worth nearly $5 billion based on the $191 million average list price of the 777-300ER (extended range).

Airlines are believed to be getting steep discounts of as much as 30 percent or more from Boeing and European plane maker Airbus as a result of the ongoing industry downturn, so Emirates will be paying much less than the sticker price in what is a buyer's market.

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The Emirates order represents a major boost for the 777-300ER and comes at a time when Boeing and Airbus are scrambling for new orders.

As part of its expansion plans, Emirates is reportedly buying more planes from Airbus, including a huge add-on order for the A380 superjumbo.

The industry magazine Flight International reported in its latest edition that Emirates will announce at the Paris show orders for 23 more of the 555-passenger A380s. That would bring to 45 the total number of firm orders Emirates has placed for the new jet, which will enter service in 2006.

Emirates will also announce in Paris orders for 10 A340-600s and take options on that many more, Flight International reported.

The 777-300ER will compete against the A340-600, which is already in service.

Even though the 777-300ER will not arrive on the scene until early 2004, industry analysts say it should continue to give Boeing a winning long-haul hand. The 777 has outsold the A340 family, which entered service first.

With a longer wingspan to hold more fuel, the 777-300ER can carry 365 passengers up to 7,250 nautical miles. That's about 1,200 nautical miles farther than the current 777-300.

An order for 26 planes would represent nearly half again as many firm orders as Boeing now has for the 777-300ER -- 56 total firm orders from seven airlines and leasing companies.

Two 777-300ERs are now in flight tests. The first, which will be the third plane down the Everett production line, will be delivered in early 2004 to Air France.

In addition to Air France, which has ordered 10 of the jets, six other customers have ordered 38 planes.

Boeing also lists eight 777-300ER orders on its books from an unidentified customer. That customer is EVA of Taiwan, sources previously told the Post-Intelligencer. Those planes are in addition to the four firm orders that Boeing and EVA have publicly disclosed.

The 777-300ER (extended range) will be able to fly up to 14 hours non-stop. Still to come from Boeing will be the 777-200LR (longer range), which will fly up to 18 hours non-stop.

Engineering design work on the 777-200LR, which will be the world's longest-range jetliner, was recently restarted. Boeing halted work on the plane after the Sept. 11, 2001, terrorist attacks because of the industry downturn. The 777-200LR would carry about 300 passengers nearly 9,000 nautical miles.

The P-I reported last year that Emirates was in serious talks with Boeing about the 777-300ER.

At the Dubai Air Show in November 2001, Emirates announced it would buy 25 Boeing 777s. But that commitment, which was never finalized into a firm order, was for existing versions of the 777, not the new longer-range model.

Later, after the Dubai announcement, Emirates made it known to Boeing that it was interested in switching to the 777-300ER. Talks have been under way since.

But a firm deal for the 777-300ER has been slowed because Emirates wanted even more powerful engines for the plane. It will apparently settle for the existing engines. Developed by General Electric, they are already the world's most powerful. The GE90-115B is certified at 115,000 pounds of thrust.

For year-around operations on some long-haul routes from its hot-weather Dubai hub, Emirates wanted the engine to have even more thrust. Hot weather affects performance. Boeing was apparently able to make its case with Emirates that the 777-300ER will meet nearly all of the airline's route requirements with the 115,000-pound thrust engine.

Boeing's current fleet of 777-200s and 777-300s are powered by GE, Rolls-Royce and Pratt & Whitney engines producing 90,000 to 100,000 pounds of thrust.

GE won an exclusive contract from Boeing to produce the more powerful engine of the 777-300ER.

Despite the industry downturn that has seen many of the world's carriers delay expansion plans and new airplane orders, Emirates is doing just the opposite.

Airline executives have said they want to triple the size of the Emirates fleet of Boeing and Airbus jets over the next 10 years. Emirates is expanding operations to the U.S. and other regions. Founded in 1985, Emirates wants to grow into one of the biggest operators between North America, Asia, Europe, Africa and Australia.